Why Cummins Stock Dropped 10% in March
Shares of engine maker Cummins (NYSE: CMI) fell 10% in March, according to data from S&P Global Market Intelligence. However, that isn't the full picture, as the stock was actually down as much as 30% at one point during the month, which included both the official start of a bear market and the return of a bull just a few days later. To suggest it was a volatile period would be an understatement. And, at the end of it all, Cummins' decline was actually less than that of the S&P 500 Index, which fell roughly 13%.
It should be pretty obvious to everyone that COVID-19 is the big story. As the virus spread from China to the rest of the world, countries began to lock down in an effort to slow the disease. Social distancing is the fancy word for it, but the real impact is that life as usual stopped. Businesses across the world closed their doors, and there's no telling when they will reopen again. At this point, it looks highly likely that there will be a global recession.
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Source Fool.com
